Beans Drop Half a Dollar

Soybean prices go into the weekend with losses of at least 56 cents in the front months. The entire complex weakened on Friday, but the board crush spread was back up 8 1/2 cents to 80.10, as the $16-$18/ ton losses in meal and 1.08-1.20 c/lb losses in oil were outmatched by the bean decline. Chinese importers purchased 136,000 MT of old crop beans in a daily announcement this morning. USDA Export Sales data showed bean bookings were 2.649 MMT for the week ending January 14. That was split with 1.818 MMT for old crop and 831k MT for new crop. Meal estimates were also above expectations with 468,515 MT sold. Soybean oil sales were reported at 52,291 MT. The weekly Commitment of Traders report showed 14,357 spec bean longs liquidated on the week ending 1/19. On net, managed money was 151,898 contracts net long. Managed money also liquidated soymeal and soy oil longs during the week. BAGE reported of the 46% Argentine soy crop is beginning to flower, which is 9.6 percentage points behind normal. BAGE reported dryness improved from 32% of the crop in reg/dry LW to just 13% for the week ending 1/21. Last year dryness only inflicted 3% of the bean crop. Conditions improved from 18% good/ex to 21% good/ex.

Mar 21 Soybeans closed at $13.11 3/4, down 58 1/2 cents,
May 21 Soybeans closed at $13.11 3/4, down 57 cents,
Jul 21 Soybeans closed at $12.98 1/2, down 56 cents,
Aug 21 Soybeans closed at $12.54, down 56 1/2 cents,
Mar 21 Soybean Meal closed at $421.60, down $16.60
Mar 21 Soybean Oil closed at $42.27, down $1.16

--- provided by Brugler Marketing & Management

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